Purpose of Work Session: Background - AIRPORT ORDINANCE AMENDMENTS
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AIRPORT ORDINANCE AMENDMENTS
- Proposed Changes to Ogden Municipal Code Title 8 – Airport
Purpose of
Work Session: To Review and Discuss Proposed Changes to Specific Sections of
Title 8 of the Ogden Municipal Code Relating to Airport Leases and
Fees
Executive Summary The City Attorney’s Office will review an administrative proposal to
amend the Ogden Municipal Code Title 8 governing the airport. Changes
are proposed to sections relating to airport lease terms and fees.
Background Ogden Hinckley Airport- History
Ogden City has operated a municipal airport since 1928. The original
airport was located on 200 acres in the South Birch Creek area and
consisted of three gravel runways. The current airport is located on
approximately 706 acres of land west of Ogden City. Construction of the
airport was completed in December of 1941. The Airport was originally
known as the Robert H. Hinckley Field, named for the serving Assistant
Secretary of Commerce, an Ogden native, and one of the original
members of the flying club that initiated construction of the first Ogden
airport. In 1988, the airport was given its current name—Ogden-Hinckley
Airport.
The Ogden-Hinckley Airport is currently a designated “reliever” for the
Salt Lake City International Airport and an alternate facility for SLC air
carrier operations. The airport currently accommodates all segments of
the aviation industry--passenger and cargo service, general aviation,
military, corporate, emergency medical, and agricultural users.
2015 – Ogden Airport Development Feasibility Study
In 2015, the City completed a feasibility study that highlighted several
opportunities for growth and development at the Airport. The study
Ogden City Council Work Session: April 13, 2021 Page 1 of 4
identified growth potential in general aviation, non-aviation commercial
development, mixed-used aviation, MRO (maintenance, repair and
operations) development, and cargo and commercial airline
development. The Study also specifically addressed the opportunities
for growth that may come with Hill’s F-35 program. The consultants
estimate that when fully developed, the Airport could add more than
4,000 new jobs to the airport.
2015 - Current
Since 2015, the Administration has been laying the groundwork for
future development at the Airport. Funding for infrastructure
improvements has been obtained from the State, and Community and
Economic Development staff are actively recruiting new businesses to
the site. The City has also been reviewing and revising ground lease
agreements to ensure the City is in compliance with current FAA
guidelines in preparation for the anticipated future development.
February 18, 2021
The Airport Advisory Committee met to review the proposed changes to
City ordinances and discussed the City’s reversionary rights. Committee
members--many of whom are also hanger owners--expressed
disagreement with some of the proposed amendments.
March 4, 2021
The Airport Advisory Committee met again to discuss the specific
changes to the ordinance. They made recommendations to remove
some time frames regarding the length of leases.
April 8, 2021
Avelo Airlines announced that it will begin passenger service between
Ogden and Burbank, CA beginning May 4, 2021.
Proposal The Administration is recommending amendments to Chapters 1, 3 and
5 of Title 8 of the Ogden Municipal Code dealing with definitions, airport
Ogden City Council Work Session: April 13, 2021 Page 2 of 4
leases, and fees respectively. A summary of the proposed changes are
as follows:
Amends Chapter 1 as follows:
• Adds a definition for “Construction Lease Date”
• Adds a definition for “Facility Lease”
• Adds a definition for “Ground Lease”
• Adds a definition for “Tie Down Permit”
Amends Chapter 3 as follows:
• Removes general length of lease and renewal options and
replaces with specific terms for Ground Leases for new and
preexisting construction, allowing terms for up to forty (40) years
from original construction lease date
• Provides conditions for facility leases allowing terms up to five
(5) years under certain circumstances
• Outlines the City’s reversionary interests upon termination
• Provides for prior tenant preference for facility leases under
certain circumstances
Amends Chapter 5 as follows:
• Increases landing fees from $0.75 to $1.25 per 1,000 pounds
• Clarifies that lease rates recently adopted and effective January
2, 2021 are for ground leases
• Adds a section specifying that facility leases will be at fair market
rental value as determined by the airport manager
• Increases monthly tie down fees from $35.00 to $50.00 for
aircraft under 12,500 pounds, and from $50 to $100 for aircraft
over 12,500 pounds
• Increases fuel flowage fees from $0.07 per gallon to $0.09 per
gallon and eliminates the air carrier discount of fuel flowage fees
Ogden City Council Work Session: April 13, 2021 Page 3 of 4• Increases biennial air operations area (AOA) access fees from
$36.00 to $50.00 for two years
• Increases secure identification display area (SIDA) access fees
from $50.00 to $100.00 for two years
• Increases overnight parking fees from $4.00 per day to $5.00 per
day
• Establishes a $20.00 monthly fee for usage of the airport office
for pickup and delivery of letters or packages
• Establishes a transaction fee of $500.00 for a new airport ground
lease, ground lease renewal, and assignment or transfer of
tenancy
• Establishes a transaction fee of $100.00 for review and approval
of any sublease agreement
• Provides that reasonable attorney fees and costs may be
charged as a condition of city permitting or approving a
transaction
• Allows the Mayor to authorize incentive lease rates or fee waivers
under certain circumstances
Attachments 1. Administrative Transmittal
a. Letter to Ventura County Airport Manager Regarding Airport
Sustainability
b. Draft Version of Ordinance Presented to Airport Advisory
Committee
2. Proposed Ordinance
Council Staff Contact: Janene Eller-Smith, MPA/JD (801) 629-8165
Ogden City Council Work Session: April 13, 2021 Page 4 of 4Submitted to CAO: 4/5/2021
Ogden City Council Transmittal Received by Council: 4/5/2021
Airport Lease and Fee Amendments
DEPARTMENT: DIRECTOR:
Community and Economic Development Tom Christopulos
DIVISION: MANAGER:
Airport Bryant Garrett
STAFF: CONTACT:
Bryant Garrett x8223, bryantg@ogdencity.com
Gary Williams x8145, garyw@ogdencity.com
REQUEST:
• Adopt proposed Airport Lease and Fee ordinance amending Chapters 1, 3, and 5 of Title 8, Ogden
Municipal Code, revising provisions related to airport leases and airport fees.
BACKGROUND:
1. Advisory Committee Review – The Airport Advisory Committee reviewed draft amendments on
February18th and March 5th, 2021. On March 5, 2021, the Advisory Committee voted 4-2 to
recommend approval of the draft amendments, subject to striking several provisions. All the
recommended strikeouts were related to airport ground leases1. Attached is a copy of the draft
amendments highlighting sections that the Advisory Committee recommended be stricken. There
were no negative comments by the Advisory Committee related to proposed fee changes. After
Advisory Committee review, the Administration made additional revisions to the draft amendments
related to airport ground leases and other matters described below.
2. Rates and Fees- The amendments increase aircraft landing fees for aircraft over 12,500 pounds,
aircraft tie down fees, security badge fees, and overnight parking. The amendments include new fees
for using the airport office as a mailing address. Also included are transactions fees to offset the
considerable staff and attorney time expended in the processing of ground lease agreements. Finally,
the amendments provide guidance to the airport manager in setting fair market rental value for airport
facility leases that involve city-owned leased premises which vary in size, location, age, finish,
condition and quality.
3. Incentives- The proposed amendments allow fee waiver incentive programs to bring essential or key
aeronautical services to the airport, provided the amount, type and duration of incentives are
consistent with FAA grant assurances and guidance. In recent years, the airport has offered an
incentive program to waive landing and fuel flowage fees to any air carrier bringing new scheduled
passenger service to Ogden Airport. FAA regulations limit that incentive to two years in duration.
1
Three of the six advisory committee members disclosed conflicts of interests at the March 5th meeting, stating they were airport tenants
or officers or employees of airport tenants, who may be personally affected by the draft amendments. Under current rules, committee
members with conflicts are not required to recuse themselves after disclosure of conflict of interest, and none chose to do so on that
occasion.
Ogden City Council Transmittal Page 1 of 4The incentive program recently resulted in the announcement by startup Avelo Airlines that it will
commence scheduled passenger service between Ogden and Burbank, six days a week. Allegiant
Airlines was also a prior incentive recipient.
4. Airport Leases – The proposed amendments establish parameters for the Airport Manager to follow
when entering into ground leases and facility leases on the airport. Any lease agreements with terms
outside these parameters would require a Mayor’s decision.
Current Lease Parameters. Current airport ordinances provide for the granting of ground leases for
a term of 15 years for a private hangar, 20 years for a commercial aeronautical operator and 25 years
for a fixed based operator. The Administration is in the process of preparing the west side of the
airport for development. The Administration has concluded that the 15/20/25 year lease terms in
current city code are insufficient to amortize tenant costs of construction for most new buildings and
will not be considered commercially reasonable by potential tenants interested in new construction on
the airport.
FAA Guidance. FAA guidance to airport sponsors is that airport ground leases should be granted for
a term of years sufficient to allow the tenant to amortize its hangar construction costs. FAA suggests
that a lease term of 30 or 35 years is usually sufficient to amortize constructions costs, and that 40
years is sufficient for even costly projects. A lease term over 50 years requires special approval by
the FAA. FAA guidance further advises that at the end of a ground lease, the leased premises should
revert to the possession and control of the landlord—the airport sponsor. A helpful summary of FAA
leasing guidance and requirements is found in the attached letter to Ventura County Airport from
Kevin C. Willis, Director of FAA Office of Airport Compliance and Management Analysis. See also,
FAA Airport Compliance Manual — Order 5190.6B, Chapter 12.3 Review of Agreements, pages 12-
2 and 12-3.
https://www.faa.gov/airports/resources/publications/orders/compliance_5190_6/media/5190_6b_chap
12.pdf
New Construction Ground Leases. The proposed amendments follow FAA guidance for new
construction ground leases. They eliminate the arbitrary 15/20/25 year lease term maximums. They
empower the airport manager to grant a ground lease for a term of years sufficient to amortize
tenant’s construction costs, up to a maximum term of 40 years. It is not expected that all new ground
leases will be granted for a full 40 year term. Rather, an amortization analysis will be conducted
during lease negotiations to determine a term of years sufficient to amortize tenant’s capital
investment.
Preexisting Construction Ground Leases. The proposed amendments also apply the 40 year
maximum lease term for new construction as a standard and limitation when granting new or renewed
ground leases for pre-existing construction. Upon expiration of a ground lease, our current
ordinances provide for a single lease renewal for a term of 5 years. The proposed amendments would
allow lease renewals for pre-existing construction up to 40 years, measured from the date of the first
ground lease granted for construction. For any period after 40 years, a tenant must pay fair market
rental value for both the improvements and the land. The city will lease 40+ year hangars through a
facility lease. 2
Implications of the 40 Year Standard for Pre-Existing Construction. It is anticipated that the 40
year standard will make some newer hangars more marketable, because it allows for a sale of a
hangar accompanied by lease term much longer than 5 years. For example, a 23 year old hangar
2
The proposed ordinance provides airport manager flexibility to grant a ground lease beyond 40 years, if the tenant agrees
to pay fair market rental value for both the improvements and land.
Ogden City Council Transmittal Page 2 of 4might be sold to a buyer with a new 17 year ground lease agreed to by the city. On the other hand,
expired ground leases on 40+ year old structures will be replaced with facility leases, whereby the
city takes ownership of the improvements and tenant pays fair market rent on the improvements and
the land.
Understandably, many airport tenants oppose the 40 year ground lease limit. They argue that the city
has liberally granted ground lease renewals in the past, and should grant unlimited ground lease
renewals in the future. In essence, they argue that the city should abandon its landlord reversionary
rights.
Ground Lease Reversionary Interests. Generally speaking, a ground lease agreement is a form of
tenant construction financing whereby tenant pays for construction of improvements upon a
landlord’s property and pays discounted ground rent for the term of the lease. Tenant owns the
improvements it builds for the term of the lease. Upon termination of the ground lease, the leased
premises revert to the possession and control of the landlord. This is called the landlord’s
reversionary rights. Upon reversion, landlord takes ownership of improvements upon the leased
premises, unless there is an agreement to allow tenant to remove the improvements. Current city
ordinances and airport lease agreements allow tenant to remove all improvements upon the leased
parcel within 60 days of termination of the lease. If the improvements are not timely removed, the
improvements become the property of the city.
FAA guidance advises airport sponsors to protect their real property rights through reversionary
clauses in lease agreements. Ultimately, the leased premises must revert back to the landlord, the
airport sponsor. But the FAA does not take a position on whether or not tenants should be allowed to
remove the improvements at the end of the lease. In reality, it is very unlikely that tenants will
voluntarily incur the cost of removing existing hangars at the end of term, and the greater risk to the
city is that tenants will leave old hangars which have little use or value--but to be torn down--thus
shifting the cost of removal to the city. The proposed amendments preserve tenants’ rights to remove
improvements contained in current lease agreements. But, they provide that for new lease
agreements, the city has the option to accept the improvements or direct tenant to remove them at
tenant’s cost 3. Thus, as new ground leases for pre-existing construction are granted, a tenant may
choose whether to accept the city’s option as a condition of entering into the lease. But, no tenant
will lose their rights under any current agreement.
FAA Compliance. The city risks violation of FAA grant assurances if it grants endless ground leases,
or ground leases of indefinite duration, without exercising its landlord reversionary rights. In 2018,
the FAA performed a compliance audit at a Shreveport airport, and noted among other things that the
airport failed to exercise its reversionary rights and obtain fair market rental value at end of the lease
term. The FAA required Shreveport to submit a corrective action plan to correct these improper
leasing practices. The proposed amendments bring Ogden City into compliance with FAA guidance
directing the exercise of landlord reversionary rights.
Protecting Taxpayer Property Rights. In addition to FAA considerations, state law requires a city
to protect the property interests of its taxpayers. In Price Dev. Co., L.P. v. Orem City, 2000 UT 26,
995 P.2d 1237, the Utah Supreme Court stated that “public property is held in trust for the public and
may not be disposed of other than “in good faith and for adequate consideration.”” It defined
adequate consideration as fair market consideration. Finally, it warned against political pressure to
give away public property rights without adequate consideration: “Utah's constitution and statutes
must be satisfied, and they require that the public's money and property be carefully tended, lest
public and political pressures persuade local government to transfer it into private hands without
3
Language for the city option to accept improvements or direct tenant to remove improvements, is borrowed from example code
language found in the appendix of the FAA Airport Compliance Manual — Order 5190.6B. Thus, it is consistent with FAA guidance.
Ogden City Council Transmittal Page 3 of 4receiving a fair net benefit in exchange.” A landlord’s reversionary interest is a valuable property
right owned by the city, held in trust for the public. The granting of endless ground lease renewals,
without receiving fair market value for the city’s reversionary property rights, risks violation of state
law. To comply with state law, ground leases of airport land should be granted for a term necessary
to amortize tenant’s capital investments and then return to the possession and control of the city to be
leased for fair market value.
Facility Leases. Facility leases are different from ground leases in that the city owns the
improvements on the leased premises, rather than the tenant. Facility leases require payment of fair
market rent on both improvements and land. The proposed amendments allow tenants to qualify for
a facility lease after tenant has exhausted available renewals of its ground lease. Prior ground lease
tenants and facility lease tenants are granted a preference to enter into a new facility lease before the
premises are offered to a new renter. It is expected that this preference will benefit both tenant and
city, because the tenant has less chance of being displaced by another, and thus has more motivation
to maintain the premises in good condition to facilitate tenant’s long-term use and occupation.
5. Summary – The proposed lease and fee amendments are intended to improve the financial health of
the airport in the present and into the future. The lease term limits for new construction will allow the
airport to attract capital investment by providing adequate time to amortize capital investments of
construction. The lease renewal polices for preexisting construction will protect the city’s contractual
reversionary rights, while allowing for the extension of some newer ground leases for a commercially
reasonable time period. The amendments will provide a forecast to current tenants, and their
successors in interest, signaling when their ground leases will be converted into ground leases. It
will also aid the city to redevelop clusters of hangars that are near the end of their productive lives.
Finally, the proposed ordinances will ensure the City’s compliance with FAA grant assurances and
guidance, while respecting state law requirements to preserve public property rights.
For the above reasons, the Administration respectfully recommends Council adoption of the Airport
Lease and Fee Amendments.
6. Attachments-
a. Airport Lease and Fee Amendments
b. Advisory Committee Review Draft of Airport Leases and Fees Ordinance,
with sections highlighted that Committee recommended to strike
c. FAA Lease Compliance Letter to Ventura County Airport
Ogden City Council Transmittal Page 4 of 4ORDINANCE NO.
AN ORDINANCE OF OGDEN CITY, UTAH, AMENDING THE OGDEN MUNICIPAL
CODE BY AMENDING CHAPTERS 1, 3, AND 5 OF TITLE 8 TO REVISE PROVISIONS
RELATED TO AIRPORT LEASES AND AIRPORT FEES; AND BY PROVIDING THAT
THIS ORDINANCE SHALL BECOME EFFECTIVE IMMEDIATELY UPON POSTING
AFTER FINAL PASSAGE.
The Council of Ogden City hereby ordains:
SECTION 1. Chapter amended. Chapter 1 of Title 8 of the Ogden Municipal
Code is hereby amended to read and provide as follows:
8-1-1: [DEFINITIONS:]
As used in this title, the following terms mean:
ADVISORY COMMITTEE: Shall mean and have reference to the Ogden Airport
Advisory Committee created by this title.
AERONAUTICAL ACTIVITY: Any activity which involves, makes possible or is required
for the operation of aircraft, or which contributes to or is required for the safety of such
operations; for example, air taxi and charter operation, scheduled or nonscheduled air
carrier services, pilot training, aircraft rental and sightseeing, aerial photography, crop
dusting, aerial advertising and surveying, aircraft sales and service, aircraft parking and
storage, sale of aviation petroleum products, aircraft manufacturing, general aviation
specialty services, airpark aviation operations, repairs and maintenance of aircraft and
sale of aircraft parts.
AIRCRAFT ACCESSORY SERVICES OPERATOR: A person providing repairs or sale
of aircraft radios, propellers, instruments, accessories, painting or upholstery.
AIRCRAFT AIRFRAME AND ENGINE REPAIR OPERATOR: A person providing
airframe and/or power plant maintenance and/or overhaul services. This category also
includes the sale of aircraft parts and accessories.
AIRCRAFT CHARTER OPERATOR: A person providing air transportation to the public
for hire, either on a charter basis or as an air taxi operator, as defined in the Federal
Aviation Act of 1958.
1AIRCRAFT MANUFACTURING SERVICES OPERATOR: A person engaged in the
manufacture, fabrication, or assembly of aircraft or aircraft/aerospace parts, systems
and components.
AIRCRAFT OPERATION: An aircraft arrival or departure from the airport.
AIRCRAFT OWNER: A person to whom an aircraft is registered and a person who
exercises the full incidents of ownership of an aircraft under a long term lease
agreement.
AIRCRAFT RENTAL OPERATOR: A person engaged in the rental of aircraft to the
public. It shall not include an aircraft owner who loans his or her aircraft for
reimbursement on a nonprofit basis.
AIRCRAFT SALES OPERATOR: A person engaged in the sale of new and/or used
aircraft or who acts as an aircraft broker.
AIRPARK: Shall mean the taxilane and areas located outside the airport, and intended
for airport/airpark access, and all real property adjacent to any portion of the airpark
taxilanes, presently constituting approximately 30.35 acres. The current survey
coordinates are:
A part of the Southeast Quarter of the Northwest Quarter of section 12, Township 5
North, Range 2 West, Salt Lake Base and Meridian, U.S. Survey; beginning at a point
on the south line of said northwest quarter which is 17.04 feet South 89°52'04" West
along said south line from the southeast corner of said northwest quarter; thence North
00°46'04" East 1,035.12 feet along a fence; thence North 88°17'54" West 750.81 feet
along a fence; thence South 44°48'51" West 1,449.65 feet along a fence; thence North
89°52'04" East 440.81 feet; thence South 01°16'19" West 33.02 feet; thence North
89°52'03" East 1,318.26 feet to the point of beginning.
AIRPORT: Shall mean and have reference to all areas comprising Ogden-Hinckley
airport that now exist or may hereafter be expanded, together with their appurtenant
facilities. The current survey coordinates are:
A part of Section 6, T 5 N, R 1 W and parts of Sections 1 and 12 T 5 N, R 2 W S. L. B. &
M.; beginning at a point that bears South 197.3 feet and West 192.4 feet from the NE
corner of the NW 1/4 of said Section 6, and running thence S. 21° 51' W. 249.5 ft.;
thence S. 14° 06' W. 2,083.9 ft. to a point that is 115.0 feet perpendicular distant from
the centerline of the east track of the U.P.R.R.; thence S. 35° 13' W. 5,192.7 ft.; thence
N. 51° 47' W. 17.0 ft.; thence S. 38° 13' W. 1,674.9 ft.; thence S. 89° 22' W. 297.9 ft.;
thence N. 0° 31' E. 591.1 ft.; thence N. 29° 12' W. 799.6 ft.; thence S. 89° 40' W. 919 ft.;
2thence N. 0° 35' E. 1,231.4 ft.; thence N. 0° 02' W. 9,659 ft.; thence N. 24° 09' W.
1,493.0 ft.; thence S. 89° 48' W. 601.5 ft.; thence Northeasterly and to the right on an
arc of a 749.0 foot radius curve 572.9 ft. (the long chord of said curve bears N. 35° 15'
30" E. 558.9 ft.); thence S. 32° 50' E. 30.0 ft.; thence N. 57° 10' E. 1,259.6 ft.; thence
Northeasterly and to the right and tangent to the previous course on the arc of 1,970.0
foot radius curve 315.50 ft.; thence N. 67° 16' E. 1,651.8 ft.; thence N. 62° 10" E. 449.7
ft.; thence N. 67° 15' E. 1,421.2 ft.; thence Southeasterly and to the right on the arc of a
2,774.9 foot radius curve 781.4 feet (the long chord of said curve bears N. 82° 04' E.
778.7 ft.); thence S. 89° 52' E. 1,182.5 ft.; thence S. 26° 44' E. 108.8 ft.; thence N. 87°
00' E. 443.7 ft.; thence S. 63° 33' E. 39.5 ft. to the point of beginning; containing 691.68
acres.
AIRPORT LAYOUT PLAN (ALP): The FAA approved chart identifying the location for
various uses and activities on the airport.
APRON: The areas surrounding buildings to which aircraft have access.
COMMERCIAL ACTIVITIES: Revenue producing activities and business activities
engaged in for profit. The subletting of one's private hangar upon the airport shall not be
construed as a commercial activity.
COMMERCIAL AERONAUTICAL ACTIVITIES PERMIT: A permit required to be
obtained from the city and maintained during any period in which a person conducts any
commercial aeronautical activity upon the airport or airpark, except that a person with
an airport lease permitting a commercial aeronautical activity shall not be required to
obtain a separate commercial aeronautical activities permit to engage in that activity
upon the airport.
COMMERCIAL AERONAUTICAL ACTIVITY: Any aeronautical activity or service
conducted on the airport or airpark as a revenue producing business or service activity
engaged in for profit, including the activities of an FBO or specialized service operator
upon the airport or airpark, and the activities of a general aviation specialty services
operator upon the airpark. The subletting of one's private hangar upon the airport shall
not be construed as a commercial aeronautical activity.
COMMERCIAL FLYING SERVICES OPERATOR: A person providing any of the
following activities: sightseeing flights; crop dusting; seeding and spraying; banner
towing and aerial advertising; aerial photography or survey; firefighting; power line or
pipeline patrol and wildlife spotting; or any other operations specifically excluded from
FAR part 135.
COMMERCIAL FUEL SALES: Shall include all fuel sold or dispensed by anyone other
than an aircraft owner or his or her employees into the aircraft owner's own aircraft.
3COMMERCIAL OPERATIONS: Operations performed for compensation or hire. The
subletting of one's private hangar shall not be construed as a commercial operation.
CONCESSION: A commercial activity operated within a city owned building with a
negotiated fee schedule.
CONSTRUCTION LEASE DATE: The earlier of the effective date or commencement
date of a ground lease agreement under which tenant improvements are or were
constructed upon the leased premises. When an original construction ground lease
agreement cannot be located, the Construction Lease Date may be determined by
reference to other evidence of timing of construction of leasehold improvements upon a
leased parcel. Subsequent ground lease agreements or lease renewals for the
premises do not alter the Construction Lease Date, even though maintenance,
remodeling and additional improvements to the leased premises may occur during
subsequent lease terms.
CONTROL TOWER: The FAA air traffic control tower at the airport.
DOPING: The application of a preparation to strengthen and tighten aircraft fabric.
ELECTRICALLY BONDED: The connection of the fueling service vehicle with an
unpainted metal point on the aircraft or vehicle using a functional bonding cable.
FAA: The federal aviation administration.
FACILITY LEASE: An agreement to lease city-owned improvements on airport
property, including hangars, buildings, signs, asphalt, concrete, or any other physical
improvement, which may also include lease of underlying or surrounding land.
FAR: Federal aviation regulations.
FIXED BASE OPERATOR (Also Known As FBO): Any person who performs the basic
essential aeronautical services including aviation fuel and oil sales, ramp parking, tie
down and storage, minor aircraft repair, passenger loading and towing.
FLAMMABLES: Any material that has a flash point at or below one hundred degrees
Fahrenheit (100°F).
4FLIGHT TRAINING OPERATOR: A person engaged in training pilots in any aircraft and
providing related ground school instruction if necessary.
FLYING CLUB: Three (3) or more persons jointly owning or leasing one or more aircraft
where payment is made to the club for the operating time of such aircraft.
FUEL FARM: One or more fuel storage tanks.
FUEL SERVICING EQUIPMENT: Vehicles and equipment used for fueling or defueling
aircraft or vehicles.
FUELING OPERATIONS: Fueling or defueling aircraft, equipment or vehicles.
GENERAL AVIATION: Shall include all phases of aviation other than aircraft
manufacturing, military aviation and regulated air carrier operations.
GROUND TRANSPORTATION: Transportation for hire or compensation to or from the
airport.
GROUND LEASE: An agreement to lease airport property for the purpose of tenant
construction of hangars, buildings, signs, asphalt, concrete, or any other physical
improvements.
GROUNDED: The connection of a functional grounding cable from the fueling vehicle to
a point or points of zero electrical potential to prevent the buildup of static electricity.
HAZARDOUS AND TOXIC MATERIALS: Shall include petroleum products, pesticides,
solvents, paint, explosives, flammables and any other substance that requires special
handling under current or future federal, state or local environmental safety and health
regulations.
NATIONAL TESTING LABORATORY: Shall include National Fire Protection
Association, Underwriter's Laboratory and similar organizations that develop
professional standards for fueling equipment.
PARK: To leave the aircraft or vehicle unattended.
PROFESSIONAL SKILLS: Any skill obtained after special study or the use of which
requires a license under FAA regulations or federal, state or local law.
RAMP: The paved area of the airport normally used for aircraft parking and loading.
5RUN UP: Engine acceleration to test its functions while the aircraft is stationary.
RUNWAY: The paved area designated for aircraft landing and takeoff.
SERVICE EQUIPMENT: Devices designed for aircraft servicing or other airport
functions or devices regularly used at the airport, including, but not limited to, fuel
trucks, aircraft starting units, mobile aircraft stairs, etc.
SPECIALIZED SERVICE OPERATOR: A person who provides aircraft accessory
services, flight training, commercial flying services, aircraft sales, aircraft airframe and
engine repair, aircraft manufacturing, aircraft rental or charter, hangar rental or any
other commercial aeronautical activities or services, except fuel sales.
TAXIWAY: The paved area of the airport designated for aircraft movement from the
runway to the ramp.
TIE DOWN: An unenclosed space where an aircraft is parked, with dimensions of forty
feet by forty feet (40' x 40'), centered on the center of the triangle formed by the tie
down eyehooks. Where tie downs overlap under this definition, the overlapping area
shall be divided equally between adjoining tie downs. [When adjacent tie downs in the
same row are leased, any space between those tie downs will be incorporated in the
lease.]
TIE DOWN PERMIT: A permit to allow an aircraft owner to park its aircraft in an
assigned tie down location on the airport. A tie down permit is not a lease of airport
property nor does it grant permittee an exclusive right to possess an assigned tie down
location. The airport manager has discretion to reassign tie down locations among
permit holders.
VEHICLE: A device (not an aircraft) in, upon or by which any person or property is or
may be propelled, moved, transported, hauled or drawn upon any roadway or ground
surface at the airport.
8-1-2: [OFFICIALS; AUTHORITY:]
A. [Mayor; Chief Administrative Officer:] The Mayor or Chief Administrative Officer
is authorized to implement this title; and to recommend to the City Council such
additional ordinances governing the use of the airport as are necessary or
desirable. This title, any administrative orders implementing it and any amendments
thereto shall be available to the public.
6B. [Airport Manager:]
1. Under the direction of the Mayor and Chief Administrative Officer, the Airport
Manager shall have full power to carry out, administer and enforce this title to
oversee its implementation, to receive applications and reports, to issue
permits, approvals, and authorizations and to make designations on behalf of
the City as provided in this title, and to manage the airport and airpark.
2. The Airport Manager, his or her representatives, and the City police shall have
the authority to take the steps necessary for the handling, policing and
protection of the public while at the airport and airpark.
8-1-3: [AGREEMENT TO FOLLOW RULES:]
Any person who enters upon or uses the airport or its facilities or any part thereof
impliedly agrees that a condition of that use is compliance with airport ordinances, rules
and regulations.
8-1-4: [AIRPORT ADVISORY COMMITTEE:]
A. [Purpose:] This section is enacted and intended for the purpose of establishing the
Ogden Airport Advisory Committee, whose objectives and purposes shall be to
advise the City Council and the Mayor in matters pertaining to the operations of the
airport.
B. [Established:] There is hereby established the Ogden Airport Advisory Committee
which shall consist of not fewer than five (5) but not more than seven (7) members,
appointed by the Mayor, with the advice and consent of the City Council.
C. [Appointment; Eligibility:]
1. In order to be eligible for appointment to the advisory committee, a person
shall:
a. Be not less than twenty one (21) years of age;
b. Be a resident of Weber County or Davis County; and
7c. Be a representative of a cross section of business, aviation and community
interests, such as pilots, engineers, travel industry, or education and
economic development representatives, etc.
2. At least two (2) members of the advisory committee shall be residents of
Ogden City or persons whose continuing principal place of business is in
Ogden City.
D. [Terms Of Office:] Advisory committee members shall be appointed for two (2)
year terms, three (3) of which will expire in odd numbered years and two (2) of
which shall expire in even numbered years on March 30 of the second year. If a
sixth or seventh advisory committee member is appointed, their terms shall expire
in even numbered years on March 30 of the second year. Each member may serve
beyond that date as needed until a successor is appointed and qualified.
E. [Vacancies:] Vacancies occurring in the advisory committee shall be filled by
appointment of the Mayor, with the advice and consent of the City Council for the
unexpired term.
F. [Compensation; Expenses:] Advisory committee members shall serve without
compensation but may be reimbursed for reasonable out of pocket expenses
incurred as committee members, if approved in advance of the expenditure.
G. [Removal From Office:] Any advisory committee member may be removed from
office by the Mayor at any time for any reason.
H. [Members' Ethics:] Advisory committee members shall be subject to and bound by
the provisions of the Municipal Officers' and Employees' Ethics Act, Utah Code
Annotated section 10-3-1301 et seq., as amended.
I. [Meetings:]
1. The advisory committee shall meet at least twice throughout the year. Meetings
may be called by the Airport Manager or the Committee Chair. The meetings
shall be conducted in accordance with the provisions of the Utah Open and
Public Meetings Law, Utah Code Annotated section 52-4-1 et seq., as
amended.
2. Meetings shall be held at the airport or at another public place.
83. The advisory committee shall keep written minutes of its proceedings which
shall be available for public inspection at the Airport Manager's Office. Copies
of the minutes shall also be filed with the City Recorder's Office.
4. The advisory committee may adopt rules of procedure for its meetings.
J. [Election Of Officers:] At its first regular meeting after March 30 each year, the
advisory committee shall elect a Chair, and a Vice Chair who will perform the duties
of Chair during the absence or disability of the Chair.
K. [Staffing Services:] The Mayor, through the Department of Community and
Economic Development, shall provide such administrative support and staff
assistance to the committee as is determined by the Mayor to be necessary for the
operations of the committee, within existing budgetary restraints.
L. [Functions:] The advisory committee shall assist the Airport Manager in
development and promotion of the airport in order to best serve the local and
regional requirements for airport service. The committee shall review matters
presented to it by the Airport Manager, the Mayor, the City Council or citizens; make
suggestions; and submit its recommendation in writing to the Airport Manager, the
Mayor or City Council. As requested by the City, the advisory committee shall:
1. Assist in the development of goals, objectives and strategies for the operation
and development of the airport and the identification of the means and methods
of implementation and their associated costs;
2. Assist the Planning Commission in the development of the airport master plan as
part of the Ogden City general plan;
3. Assist in the development of ordinances, rules and regulations for the effective
and efficient operation of the airport;
4. Review proposed changes in rates and charges;
5. Assist in the development of a capital improvement plan for the airport, including
the Federal and State airport grant programs;
6. Review complaints and suggestions from airport users and affected neighbors as
requested;
7. Assist in the development of marketing strategies for the economic development
of the airport; and
98. Annually submit in writing to the City Council and the Mayor a report of the
activities of the committee during the year, together with any recommendations
for the subsequent year.
M. [Sunset Provision:] Unless subsequently extended by appropriate action, the term
of this committee shall sunset and expire on June 30, 2023.
8-1-5: [GRIEVANCE PROCEDURE:]
A. [Hearing Request:] Any person aggrieved by a decision of the Airport Manager or
any person whose compliance with this title would create severe hardship may
request a hearing before the Chief Administrative Officer or his/her designated
representative. Such request shall be made in writing and such hearing shall be
held within ten (10) days of receipt of said request.
B. [Present Evidence:] Any person requesting a hearing shall present all evidence,
records and testimony of which that person has knowledge concerning the
grievance or hardship.
C. [Decision:] The Chief Administrative Officer or his/her designated representative
shall issue written findings of fact and a decision concerning the grievance or
hardship within fifteen (15) working days, such decision to be final. The Mayor may
elect to review the Chief Administrative Officer's decision when requested by the
aggrieved party in writing within ten (10) working days after the findings and
decision have been rendered.
SECTION 2. Chapter amended. Chapter 3 of Title 8 of the Ogden Municipal
Code is hereby amended to read and provide as follows:
8-3-1: [PERMISSION REQUIRED:]
A. No person shall use any area or facility on the airport for any commercial activities
without first: 1) complying with applicable city regulations; 2) obtaining a permit for
the activity from the city or signing a lease, whichever is required; 3) paying the
rates and charges prescribed for that activity in chapter 5 of this title; 4) agreeing to
indemnify the city as outlined in subsection 8-3-3D5 of this chapter; and 5) meeting
the minimum standards for the activity.
10B. [Permission will expire:] 1) if the permitted commercial activity ceases for a period
of twelve (12) months; or 2) as specified by the lease, concession agreement or
permit.
8-3-2: [INSURANCE REQUIREMENTS:]
A. [Minimum Limits Of Insurance:]
1. Each person conducting a commercial activity involving aircraft operation,
including, but not limited to, aircraft instruction, rental or charter, shall maintain
aircraft liability insurance with limits of not less than one million dollars
($1,000,000.00) per combined single limit per occurrence for bodily injury,
personal injury, and property damage.
2. Each person conducting any commercial activity in which customers, vehicles or
aircraft have access to or are operated on the ramps, apron, taxiways or
runways shall maintain commercial general liability insurance with limits of not
less than one million dollars ($1,000,000.00) combined single limit per
occurrence for bodily injury, personal injury and property damage; business
automobile liability insurance with limits of not less than one million dollars
($1,000,000.00) combined single limit per accident for bodily injury and property
damage; workers' compensation limits as required by the laws of the state; and
employer's liability insurance with limits of not less than one hundred
thousand/five hundred thousand/one hundred thousand dollars
($100,000.00/500,000.00/100,000.00).
3. Each person selling or maintaining aircraft, aircraft parts or fuel shall maintain
products and completed operations liability insurance with limits of not less than
one million dollars ($1,000,000.00) combined single limit.
4. During construction, the lessee or owner, or the contractor of the lessee or
owner, shall maintain all applicable liability insurance as stated in subsections
A1, A2 and A3 of this section, commercial general liability insurance with limits
of not less than one million dollars ($1,000,000.00) combined single limit per
occurrence for bodily injury, personal injury and property damage; business
automobile liability insurance with limits of not less than one million dollars
($1,000,000.00) combined single limit per accident for bodily injury and property
damage; workers' compensation limits as required by the laws of the state;
employers' liability insurance with limits of not less than one hundred
thousand/five hundred thousand/one hundred thousand dollars
($100,000.00/500,000.00/100,000.00); and all-risk builders' liability insurance
coverage in the amount of the project cost and any other construction
obligations that may arise.
11B. [Deductibles And Self-Insured Retentions:] Any deductibles or self-insured
retentions greater than one thousand dollars ($1,000.00) must be declared to and
approved by the city.
C. [Other Provisions:] The policies are to contain, or be endorsed to contain, the
following provisions:
1. The city, its officials, employees and volunteers are to be covered as additional
named insured on all policies to include liability arising out of aircraft operation
and commercial activities; products and completed operations; premises
owned, leased or used; and automobiles owned, leased, hired or borrowed by a
commercial operator or contractor. The coverage shall contain no special
limitations on the scope of protection afforded to the city, its officials, employees
or volunteers.
2. The operator's, contractor's or lessee's insurance coverage shall be primary
insurance as respects the city, its officials, employees and volunteers. Any
insurance or self- insurance maintained by the city, its officials, employees or
volunteers shall be in excess of the operator's, contractor's or lessee's
insurance and shall not contribute with it.
3. The operator's, contractor's or lessee's insurer shall agree to waive all rights of
subrogation against the city, its officials, employees and volunteers for losses
arising under workers' compensation and employers' liability coverage.
4. Each insurance policy required shall be endorsed to state that coverage shall
not be suspended, voided, canceled, reduced in coverage or in limits except
after thirty (30) days' prior written notice has been given to the city by certified
mail, return receipt requested.
D. [Acceptability Of Insurers:] Insurance is to be placed with insurers carrying a
"Bests" rating of not less than B+XII.
E. [Verification Of Coverage:] Each operator, contractor or lessee shall furnish the
city with certificates of insurance affecting coverage required by this title. The
certificates for each insurance policy are to be signed by a person authorized by
that insurer to bind coverage on its behalf. The certificates are to be on forms
acceptable to the city and are to be received and approved by the city before
activity commences.
12F. [Subcontractors:] The operator, contractor or lessee shall include all
subcontractors and sub subcontractors as insured under its policies or shall furnish
separate certificates for each subcontractor. All coverage for subcontractors shall
be subject to all of the requirements stated herein.
8-3-3: [LEASES AND AGREEMENTS:]
A. [Policy:] It shall be the airport's policy to negotiate lease terms that make the airport
as self-sufficient as possible; that provide flexibility to manage the airport; that
provide high quality and all necessary services; and that provide a fair return on
lessee's investment in capital improvements.
B. [Proposal And Permits:] A request to the city to lease airport land or facilities for
commercial activities, to issue a commercial aeronautical activities permit, or to
issue any other permit to conduct nonaeronautical commercial activities should be
made in writing and include a proposal which sets forth the scope of operations
proposed, including the following:
1. The name, address and telephone number of the applicant.
2. The services the applicant will offer.
3. The proposed date of commencement of the activity and term of conducting
the same.
4. A detailed description of the scope of the intended operation.
5. The means and methods to be employed to accomplish the contemplated
services.
6. The amount of land the applicant desires to lease.
7. The size and position of the building the applicant will lease or construct, if
applicable.
8. The number of aircraft the applicant will provide, if applicable.
9. The number and qualifications of persons the applicant will employ.
10. The proposed hours of operation.
11. The amount and type of insurance coverage the applicant will maintain.
1312. Evidence of the applicant's financial capability to perform and provide the
proposed services and facilities.
[C. [Terms:]
1. Length Of Lease:
a. Land on which private hangars for aircraft storage are constructed may be
leased for a fifteen (15) year term.
b. Land on which a commercial special service operator building is
constructed may be leased for a twenty (20) year term.
c. Land on which a fixed base operator building is constructed may be leased
for a twenty five (25) year term.
d. The city reserves the right at its discretion to negotiate leases in excess of
the above limits when a prospective lessee agrees to make a substantial
capital investment.
2. Renewal: Upon lease expiration, lessee shall have the "first right of refusal" to
renew their lease; provided however, that the lease is not in default. Each
renewal term will be for five (5) years.]
C. [Types of Leases:]
1. Ground Leases.
The city may enter into a ground lease of airport land and permit tenant to
construct improvements thereon, including hangars, buildings, structures,
signs, and other improvements. It is the policy of the city that airport ground
leases be granted for a term of years that will reasonably allow tenant to
amortize its capital investment of construction expenses, while preserving the
city’s reversionary and economic interests in airport property. Airport manager
may enter into airport ground leases within the following parameters.
a. New Construction: Ground leases for new construction upon leased
premises having a Construction Lease Date after April 30, 2021, may be
granted for a term of years sufficient to amortize tenant’s capital
investment in the construction, up to a term of forty (40) years.
14b. Preexisting Construction. Ground leases for premises having a
Construction Lease Date prior to April 30, 2021, shall be subject to the
following:
i. Lease Renewal. A new or renewed ground lease may be granted for
airport premises upon expiration of a prior ground lease, provided
that:
1. tenant makes timely application and meets all airport
qualifications for lease renewal;
2. the lease term of years will not exceed forty (40) years from
the Construction Lease Date; alternatively, tenant agrees to
pay fair market rent for the land and all improvements
located thereon for any period exceeding 40 years from the
Construction Lease Date;
3. the premises are not part of a:
a. a planned redevelopment of airport property; or
b. an airport plan to change the use of the premises; and
4. for at least two years prior to the proposed ground lease,
tenant has been in timely compliance with:
a. tenant’s ground lease, and any other airport
agreement tenant has with the City; and,
b. all airport ordinances, rules, regulations, and policies.
ii. New Agreement. The granting of any renewal lease term may be
conditioned upon tenant entering into a new lease agreement using
the city’s lease agreement form(s) then in use at the time of
renewal.
c. City’s Reversionary Interests.
i. Reversion upon Termination. Upon expiration or other termination
of any ground lease agreement, the leased premises shall revert to
the possession and control of the city. The improvements installed
15thereon will become the property of the city or will be removed from
the premises at the tenant’s expense, at the option of the city.
1. The above Subsection i shall not be deemed to revoke any
clause found in a current ground lease agreement that
specifically grants tenant an option to remove or leave a
structure on the premises upon termination of the lease
agreement.
ii. Reversion Clause. Every ground lease agreement shall include a
clause setting forth the city’s reversionary interests in the leasehold
premises, in a form approved by the city attorney.
2. Facility Leases. The airport manager may enter into a facility lease for airport
improvements and land owned by the city, as follows.
a. Lease Term. Facility leases are typically entered into for a lease term of 5
years or less. Longer lease terms may be granted where tenant commits to
make substantial capital improvements to city-owned premises or to make
other substantial investments to provide key airport services.
b. Expiration. Upon expiration or other termination of a facility lease, tenant
shall quit the premises and return possession of the premises to the city,
leaving the premises in the same condition as at commencement of the
lease, reasonable wear and tear excepted.
c. Prior Tenant Preference. The tenant of an expiring ground lease or facility
lease may be granted a preference to enter into a new facility lease for the
same premises prior to the city offering to lease the premises to another
party, provided that:
i. tenant makes timely application and meets all qualifications for a facility
lease;
ii. the premises are not part of a:
1. a planned redevelopment of airport property; or
2. an airport plan to change the use of the premises;
iii. for at least two years prior to the proposed facility lease, tenant has been
in timely compliance with:
161. tenant’s ground lease, and any other airport agreement tenant has
with the City; and,
2. all airport ordinances, rules, regulations, and policies.
3. [Final Decision:] The above lease terms are not absolute and are subject to
negotiation. A final decision will be made by the mayor, upon consultation with
the FAA.
D. [Mandatory Provisions:] Every lease or agreement entered into shall be subject to
and shall contain the following provisions, or similar substitute provisions approved
by the city attorney:
1. The lessee agrees to comply with provisions of this title, and as it may hereafter
be amended, and with implementing administrative orders as they may
hereafter be adopted or amended. The lessee further agrees that more than
three (3) violations of this title during any three (3) month period by lessee, its
agents or employees; or any other pattern of violations that manifests reckless
disregard for the health, safety and general welfare of the public and/or airport
users shall be a material breach which may terminate the agreement at the
option of the city. The city shall not exercise this option until it has notified the
lessee and given the lessee a reasonable opportunity to retrain employees or
otherwise demonstrate that lessee, its employees and agents can and will
conform to this title. In addition to the above penalties, this agreement may be
canceled by the city if the lessee fails to pay, when due, the whole or any part
of the amounts agreed upon for rents and charges and such default continues
for thirty (30) days after the city has demanded payment in writing.
2. The city may terminate any nonaeronautically related lease upon ninety (90)
day notice to the lessee.
3. The lessee shall maintain the leased premises in a reasonable condition of
repair, cleanliness and general maintenance.
4. It is understood and agreed that the lessee is an independent contractor and
not an agent or employee of the city, and the city is an independent contractor
and not an agent or employee of the lessee with regard to its acts or omissions
hereunder.
5. Lessee shall protect, defend and hold lessor and its officials, employees,
agents and volunteers completely harmless from and against any and all
liabilities, losses, suits, claims, judgments, fines or demands arising by reason
of injury or death of any person or damage to any property, including all
17reasonable costs for investigation and defense thereof (including, but not
limited to, attorney fees, court costs and expert fees), of any nature whatsoever
arising out of or incident to this agreement and/or the use or occupancy of the
leased premises or the acts or omissions of lessee's officers, agents,
employees, contractors, subcontractors, licensees or invitees, regardless of
where the injury, death or damage may occur, unless such injury, death or
damage is caused by the sole negligence of the lessor. The lessor shall give
the lessee reasonable notice of any such claims or actions. The lessee shall
also use counsel reasonably acceptable to lessor in carrying out its obligations
hereunder. The provisions of this subsection shall survive the expiration or
early termination of this agreement. In carrying out any of the provisions herein,
or in exercising any power or authority granted to lessee, there shall be no
liability upon any official of the city, its authorized assistants, consultants or
employees, either personally or as officials of the city, it being understood that
in such matters they act as agents and representatives of Ogden City
Corporation. It is further understood and agreed that the city assumes no
responsibility for any damages or losses that may occur to the lessee's
property, except the obligation that the city will not willfully, intentionally or
negligently damage the property of the lessee.
6. [Upon the expiration or other termination of this lease agreement, the lessee
shall have the right to remove any building owned by the lessee from the
leasehold premises, and upon removal agrees to restore the land to as good
condition as it was before the erection of any building. Removal must be
accomplished within ninety (90) days, or as otherwise mutually agreed, after
termination of any agreement and must be done without injury to the demised
premises.] If the city is required to terminate a ground lease through legal
action or by exercise of its discretionary power under the lease, and the lessee
is not in default, the city shall pay [the]to lessee the fair market rental value [for
the] of leasehold improvements for the unexpired portion of the lease term, less
ground lease rents payable by lessee for the same period.
7. No person may sublease or assign any facility or lease or contract at the airport
except with approval of the city. The city shall be entitled to receive any
revenue that the lessee/assignor of a city owned building receives from a
sublessee/assignee that exceeds the amount the lessee/assignee is required to
pay the city pursuant to the lessee's/assignee's agreement.
8. The airport manager or a designated representative may enter any facility or
property on the airport at reasonable times and for reasonable purposes
without prior notice.
9. There is hereby reserved to the city, its successors and assigns, for the use
and benefit of the public a right of flight for the passage of aircraft in the
airspace above the surface of the premises hereby leased, together with the
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